**Registered company number: 07461134 Charity registered numbers: 1139609 (England and Wales) and SC039066 (Scotland)** ## **Association of Charity Independent Examiners** **(A company limited by guarantee)** **Unaudited** **Trustees' report and financial statements** **For the year ended 31 March 2023** ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Trustees' report and financial statements For the year ended 31 March 2023** ## **Contents** ||**Page**| |---|---| |Reference and administrative details of the Charity, its Trustees and advisers|1| |Trustees' report|2-6| |Independent Examiner's report on financial statements|7| |Financial statements|8 -18| |•
Statement of financial activities|8| |•
Balance sheet|9| |•
Notes to the financial statements|10-18| **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Reference and administrative details of the Charity, its Trustees and advisers For the year ended 31 March 2023** |**Name**|Association of Charity Independent Examiners ("ACIE")| |---|---| |**Company registered number**|07461134| |**Charity registered numbers**|1139609 (England and Wales) and SC039066 (Scotland)| |**Registered office**|1st Floor, Block C| ||The Wharf| ||Manchester Road| ||Burnley| ||BBll lJG| |**Trustees**|Tony Clarke| ||Kerry Clayton| ||Mark Heaton*| ||Susan Robinson*| ||Frances Taylor*| ||Anthony Vincent*| ||Alison Cook (to 7 November 2022)| ||*Denotes ACIE Full Member| |**Bankers**|Unity Trust Bank PLC| ||9 Brindleyplace| ||Birmingham| ||Bl 2HB| |**Independent Examiner**|Anita C Mason BA(Hons) BFP FCA| ||BWM Chartered Accountants| ||Suite 5.1| ||12 Tithebarn Street| ||Liverpool| ||L2 2DT| Page 1 ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Trustees' report** ## **For the year ended 31 March 2023** The Trustees, who are the directors of Association of Charity Independent Examiners ("ACIE") for the purposes of company law, are pleased to present their report and the financial statements (together with the Independent Examiner's report thereon) of ACIE for the year ended 31 March 2023. ## **Structure, Governance and Management** ACIE is a charitable company limited by guarantee which was incorporated on (and governed by its Articles of Association dated) 6 December 2010. Each member of the company is required to contribute an amount not exceeding £1, should the company be wound up while he/she is a member, or within one year after he/she ceases to be a member. The Directors are the members of the company. The Articles are supported by Regulations for Subscribing Members, which were last updated in February 2012. ACIE is registered with the Charity Commission for England and Wales and the Office of the Scottish Charity Regulator. ## **Purpose** ACIE is an association of people who carry out Independent Examinations ("IEs") of charities' financial statements, providing support and information to its members, charities and other interested parties. The purpose of ACIE is to promote best practice in IE. ## **Objectives** The objects of ACIE are to promote greater effectiveness of charities in the United Kingdom in the achievement of their charitable objects by: - providing advice, support, and training to any person acting or wishing to act as an Independent Examiner of charity accounts; - promoting and maintaining high standards of practice and professional conduct by its members; and - providing charity trustees with information in connection with the selection and appointment of Independent Examiners. ## **Activities** Activities during the year included: - an enquiry service for members, non-members and charities seeking an Independent Examiner; - training courses and conferences; - publishing newsletters for members and providing topical communications by email; - awarding the professional qualification of Full Membership, designated by ACIE (ACIE Associate) or FCIE (ACIE Fellow); and - collaboration with other bodies where this furthers ACIE's objects. ## **Public Benefit** The Trustees have considered ACIE's activities and achievements for 2022/2023 and its plans for 2023/2024, against the Public Benefit Guidance issued by the Charity Commission. They agreed that the public who benefit from ACIE's work are those who are beneficiaries of the numerous small charities that are helped either directly by ACIE's information service or where ACIE members act as Independent Examiners. The Trustees are satisfied that this report on ACIE's activities in 2022/2023 and its plans for the future, demonstrate that, in fulfilling its objects, the charities which ACIE assists should experience on-going or improved efficiency and confidence in their financial management allowing them to spend more time, money and energy on their own beneficiaries. Page 2 ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Trustees' report (continued) For the year ended 31 March 2023** ACIE is committed to those who carry out IE as volunteers (VI Es). ACIE is grateful to the members who make donations to the Bursary Fund restricted fund, which enables it to offer subsidised membership subscriptions to VIE members. ## **Achievements and Performance 2022/2023** During 2022/2023, we endeavoured to deliver more of our training events on a face-to-face basis compared to the previous year. We planned face-to-face conferences for England and Wales (in Manchester) in June 2022 and Scotland and Northern Ireland (in Stirling) in September 2022, but we unfortunately we had to cancel both of them. The UK Wide on line conference in September 2022 attracted a disappointing number of members. The on line webinars were largely a success, attracting good numbers of members and non-members. In 2023/2024 to date, we have held both face to face and on line conferences. Most attendees for training events were based in London and the South-East of England, while Scotland accounted for around one-fifth of attendees, which correlates with the proportion of members in Scotland. It remains a concern that our training events attracted only very small numbers from Wales and Northern Ireland. Keeping members up to date: We published a number of newsletters and bulletins to members, addressing key changes in charity finance regulation and other matters of interest to Independent Examiners and preparers of charity financial statements. We continued to respond to members' queries, and to enquiries from charities requiring I Es and IE advice. Outreach work developed well in the year. We were able to offer training packages to a number of firms, and specialised offerings to the MSc Charity Accounting and Management students at the Bayes Business School, Voluntary Action South Ayrshire (VASA), the National Federation of Women's Institutes (NFWI) and St Mary's University, Twickenham. We continued to work with our partner organisations, Association of Church Accountants and Treasurers (ACAT), Scottish Council for Voluntary Organisations (SCVO) and The Honorary Treasurers Forum (Honorary Treasurers), and on a training project for undergraduates at Liverpool John Moores University. We worked with The National Council for Voluntary Organisation (NCVO) and Wales Council for Voluntary Action (WCVA) to develop new links. We completed the project to re-design and re-develop ACIE's website, logo and artwork. ## **Members** At the end of March 2023, we had 467 Subscribing Members, which was 10 fewer than the previous year, due primarily to retirements in the year. Of those members who reported their current activities, 30% work for charities, suggesting that we are reaching the charity sectors. London and the South-East of England continue to be from where the majority of our subscribing members are drawn, with the next largest cluster in South Scotland. It remains of concern that we have no Full Members in Northern Ireland. Around 20% of the membership are Voluntary Independent Examiners (VIEs), who undertake independent examinations either on a voluntary basis (ie without charging any fees or expenses) or have no more than £500 income per year from IE work. We congratulate those Affiliate Members whose applications to become Full Members have been successful. Success is dependent on Affiliate Members being able to demonstrate that they have the requisite ability and practical experience in examining and/or preparing charities' financial statements, and results in their being able to use the designated letters of ACIE or FCIE to evidence their level of expertise in the field of IE. We welcome our new Affiliate Members who joined during 2022/2023. Unfortunately, we said goodbye to some members, including those who have decided to retire from performing I Es, and we wish them all the best for the future. Page 3 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Trustees' report (continued) For the year ended 31 March 2023** ## **Improving the standard of Independent Examination** ACIE promotes and maintains high standards of practice, in part through progression to Full Membership. In 2022/2023, ACIE ran a number of courses to support Affiliate Members applying for Full Membership. During 2022/2023, 15 Affiliate Members attended an 'Applying for Full Membership' workshop, and 22 people (19 members and three non-members) attended a 'Building Your Independent Examiner skills' course. ## **Continuing Professional Development** Our best practice training is designed to give Independent Examiners, whatever their experience, confidence in their abilities and takes attendees through the IE regime, considerations when taking on new clients, planning examination work, carrying out fieldwork, and making statutory and discretionary reports to the appropriate regulator(s). ## **Member Networking** We ran successful member networking events as part of the Annual Conference. We continued to emphasise member networking in Wales and in Northern Ireland. ## **Independent Examiner Workbook** The Independent Examiner Workbook continued to make sales and has become a valuable tool for many Independent Examiners. ## **Conversion of ACIE to a CIO** A major part of the business of 2022/2023 was addressing the conversion of ACIE from a company limited by guarantee to a Charitable Incorporated Organisation (CIO). At the end of 2022/2023, a proposal was put to the Subscribing Members, and this was passed in early 2023/2024. The formal conversion will take place when the Charity Commission for England and Wales advises ACIE that it has approved the conversion documentation (including ACIE's proposed Foundation CIO Constitution) that ACIE submitted in August and September 2023. ## **Governance and Internal Policies and Procedures** ACIE continued to review its policies and procedures, the latest versions of which are available to members on our website. ## **Challenges 2022/2023** The main challenge for 2022/2023 was how to ensure that, with a reduced number of Trustees (and reduced time availability generally), we continued to do well the things that we believe that we have done well in recent years (see below) and, at the same time, making progress with the areas for improvement (see below). ## What we do well: - being mindful of changes affecting the third sector and how to continue providing our members with the information, support and advice they need, including low-cost professional indemnity insurance; - striving to proactively promote the importance of IE to charity trustees and treasurers; - responding to training needs of members and non-members, including methods of provision; - working in partnership with other organisations to promote best practice in IE; and - engaging ACIE Trustees to be committed and active members of ACIE's Board. - Areas for improvement: - increasing the numbers of people joining ACIE - in particular, under-represented demographics; - adding value to our membership packages and raising awareness of the various benefits on offer; - providing members with access to training and tools to help with their examinations in all parts of the UK; Page 4 ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Trustees' report (continued)** ## **For the year ended 31 March 2023** - encouraging more Affiliate Members to apply for Full Membership, ensuring that the system is transparent and effective, and applications are processed efficiently; - reflecting on the needs of the organisation and the roles and responsibilities of ACIE Trustees, ACIE staff and the individuals who provide office and administrative support; - continuing to encourage Full Members to maintain their CPD and to complete their CPD declarations; and - • expanding regional engagement; and - increasing the number of ACIE Trustees. ## **Trustees** The Board consists of up to nine Trustees, elected by ACIE's Subscribing Members, to serve for a period not exceeding three years, and up to three Trustees co-opted by the elected Trustees to serve until the following 30 June. Eligibility: - Elected Trustees must be Subscribing Members of ACIE. Co-opted Trustees may, but are not required to, be Subscribing Members of ACIE. - The majority of the Trustees must be ACIE Full Members. - Retiring Trustees are eligible for re-election or may be co-opted again, provided that no Trustee may serve for more than nine consecutive years. The names of the Trustees who have served since 1 April 2022 are shown on page 1 above. ## **Organisational structure** The Trustees normally meet at least four times a year to consider the business of ACIE. In 2022/2023, one of the meetings was held in Manchester, and the others were held virtually via Zoom. Trustees also participated in the following committees that met regularly as required: - Governance and Finance Committee - Membership Committee - Training Committee - Advisory Committees for Scotland and Northern Ireland ## **Financial Review** ACIE's total income receivable for 2022/2023 was £53,648 (2021/2022: £54,999). Total expenditure in the year was £78,806 (2021/2022: £51,348), which resulted in a net decrease in funds of £25,158 (2021/2022: an increase of £3,651). Much of the net decrease was the result of completing the project to re-design and re-develop ACIE's website, logo and artwork, which cost a total of £19,344. ACIE's primary source of income is membership subscriptions, which showed a small decrease (£32,144 compared to £33,304 in 2021/2022). The amounts received from members for professional indemnity insurance went up from £6,860 {2021/2022) to £7,784 (2022/2023). ACIE's total funds at 31 March 2023 amounted to £49,364 (2022: £74,522), comprising unrestricted funds of £49,277 {2022: £74,270) and the Bursary Fund restricted fund of £87 (2022: 252). The Bursary Fund restricted fund is funded by donations kindly made by members, and subsidises those members who are Voluntary Independent Examiners ("VI Es") and pay their membership subscriptions at a lower level than other members. Donations to the Bursary Fund totalling £927 were utilised during 2022/2023 (2021/2022: £685). ## **Reserves Policy** The Trustees' reserves policy is to maintain a minimum of six months' day-to-day running costs - currently about £27,000 (2022: £22,000) - to ensure sufficient working capital is available to meet expected expenditure and liabilities in the Page 5 ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Trustees' report (continued) For the year ended 31 March 2023** event of a fall in income. At 31 March 2023, the balance on the General Fund was £44,651 (2022: 69,980) (all held in liquid funds), which means that there were excess free reserves at that date of £17,651 (2022: £47,980). ## **Risk Management** - The Trustees continued to assess and address the risks faced by ACIE. The major challenges are: - having only one part-time employee and one part-time, self-employed finance administrator; - having a reduced number of Trustees, with some having reduced time availability for addressing and managing ACIE developments and issues; - how to maintain and grow the numbers of Full Members; and - how to ensure that Full Members adopt and maintain high standards of practice. ## **Accounting and Reporting Responsibilities** The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the Trustees to prepare financial statements for each financial year. Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of ACIE's state of affairs and of its income and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to: - select suitable accounting policies and then apply them consistently; - observe the methods and principles 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) ("the Charities SORP"); - make judgements and accounting estimates that are reasonable and prudent; - state whether applicable UK Accounting Standards (FRS 102) have been followed, subject to any material departures disclosed and explained in the financial statements; and - prepare the financial statements on the going concern basis, unless it is inappropriate to presume that ACIE will continue in business. The Trustees are responsible for: - keeping adequate accounting records which: - are sufficient to show and explain ACIE's transactions and disclose with reasonable accuracy at any time the financial position of ACIE; and - enable them (the Trustees) to ensure that the financial statements comply with the Companies Act 2006; and - safeguarding ACIE's assets and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. ## **Approval** This report, which was prepared in accordance with the provisions within Part 15 of the Companies Act 2006 relating to small companies, was approved by the Trustees on 5 December 2023 and signed on their behalf by: **Mark Heaton** Trustee Page 6 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Independent Examiner's report For the year ended 31 March 2023** ## **Independent Examiner's report to the Trustees of Association of Charity Independent Examiners** I report to the Trustees on my examination of the financial statements of Association of Charity Independent Examiners ('the Charity') for the year ended 31 March 2023, which are set out on pages 8 to 18. This report is made solely to the Charity's Trustees, as a body, in accordance with Section 145 of the Charities Act 2011. My examination has been undertaken so that I might state to the Charity's Trustees those matters I am required to state to them in an Independent Examiner's report and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the Charity and the Charity's Trustees as a body, for my examination, for this report, or for the opinions I have formed. ## **Responsibilities and basis of report** As the Trustees of the Charity (and its Directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Charities and Trustee Investment (Scotland) Act 2005 ('the 2005 Act'), the Charities Accounts (Scotland) Regulations 2006 (as amended), and the Companies Act 2006 ('the 2006 Act'). Having satisfied myself that the financial statements of the Charity are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of the Charity's financial statements carried out under section 44(1)(c) of the 2005 Act and section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the requirements of Regulation 11 of the Charities Accounts {Scotland) Regulations 2006 (as amended) and all the applicable directions given by the Charity Commission under section 145(5)(b) of the 2011 Act. ## **Independent Examiner's statement** Since the Charity is required by company law to prepare its accounts on an accruals basis and is registered as a charity in Scotland your examiner must be a member of a body listed in Regulation 11(2) of the Charities Accounts (Scotland) Regulations 2006 (as amended). I can confirm that I am qualified to undertake the examination because I am a member of the Institute of Chartered Accountants in England and Wales, which is one of the listed bodies. I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe that in any material respect: - accounting records were not kept in respect of the Charity as required by section 386 of the 2006 Act and Regulation 4 of the 2006 Accounts Regulations; or - 1. 2. the financial statements do not accord with those records; or 3. the financial statements do not comply with the accounting requirements of Regulation 8 of the Charities Accounts (Scotland) Regulations 2006 (as amended) and do not comply with the accounting requirements of section 396 of the 2006 Act 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; or - the financial statements have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities [applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)). - 4. 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 financial statements to be reached. Signed: Dated: 12/12/2023 ## **Anita C Mason BA{Hons) BFP FCA** BWM Chartered Accountants Suite 5.1, 12 Tithebarn Street, Liverpool, L2 2DT Page 7 ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2023** |**Note**
**Income from:**
Donatlons and legacies
4
Charitable activities
5
Bank and other interest
**Total income**
**Expenditure on charitable activities:**
Direct costs
6
Support costs
7
**Total expenditure**
**Net (expenditure)/income**
Transfers between funds
15
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
15
**Total funds carried forward**
15|**Unrestricted**
**Restricted**
**Funds**
**funds**
**2023**
**2023**
£
£
**135**
**762**
**52,153**
**598**
**Total**
**funds**
**2023**
£
**897**
**52,153**
**598**
Total
funds
2022
911
54,050
38| |---|---| ||**52,886**
**762**
**53,648**
54,999| ||**25,771**
**53,035**
**25,771**
**53,035**
22,627
28,721| ||**78,806**
**78,806**
51,348| ||**(25,920}**
**762**
**927**
**(927}**
**(25,158}**
3,651| ||**(24,993}**
**(165)**
**(25,158}**
3,651| ||**74,270**
**252**
**74,522**
70,871| ||**49,277**
**87**
**49,364**
74,522| This statement of financial activities includes all gains and losses recognised in the year and complies with the requirements for the income and expenditure account under the Companies Act 2006. All income and expenditure derive from continuing activities. Comparative figures for the previous year by fund type are shown in Note 17. The notes on pages 10 to 18 form an integral part of these financial statements. Page 8 ## **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Balance sheet As 31 March 2023** |**Note**
**Current assets:**
Debtors
11
Cash at bank and in hand
Creditors: Amounts falling due within one year
12
**Total net assets**
14
**The funds of the charity:**
Restricted fund - Bursary Fund
15
Unrestricted funds:
Designated Fund - Development Fund
15
General Fund
15
Total unrestricted funds
**Total funds**|**Total funds**
Total funds
**2023**
2022
£
£
**1,683**
1,509
**58,900**
84,960
**60,583**
86,469
**(11,219)**
(11,947)
**49,364**
74,522| |---|---| ||**87**
252| ||**4,626**
4,770
**44,651**
69,500
**49,277**
74,270
**49,364**
74,522| The Trustees (who are also the Directors of ACIE for the purposes of company law) confirm that, for the year ended 31 March 2023: - ACIE was entitled to exemption from audit under section 477 of the Companies Act 2006 ("the Act"); and - members have not required ACIE to obtain an audit of its financial statements in accordance with section 476 of the Act. However, in accordance with section 145 of the Charities Act 2011 and section 44 of the Charities and Trustee Investment (Scotland) Act 2005, the financial statements have been examined by an Independent Examiner, whose report appears on page 7. The Trustees acknowledge their responsibilities for ensuring that ACIE keeps accounting records which comply with section 386 of the Act and for preparing financial statements which give a true and fair view of ACIE's state of affairs as at the end of the financial year and of its incoming resources and application of resources, including its income and expenditure, for the financial year in accordance with the requirements of sections 394 and 395 and which otherwise comply with the requirements of the Act relating to financial statements, so far as applicable to ACIE. The notes on pages 10 to 18 form an integral part of these financial statements. These financial statements, which have been prepared in accordance with the provisions in the Act relating to small companies, were approved by the Trustees on 5 December 2023 and signed on their behalf by: **Mark Heaton** Trustee Page 9 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **1 General information** Association of Charity Independent Examiners ("ACIE") is a charitable company governed by its Articles of Association, dated 6 December 2010, and registered in England and Wales. Its registered address is 1st Floor, Block C, The Wharf, Manchester Road, Burnley BBll lJG. ACIE is registered as a charity in England and Wales (registered number 1139609) and Scotland (registered number 07461134). ACIE is a public benefit entity. ## **2 Accounting policies** - **2.1 Basis of preparation of financial statements** The financial statements are prepared on an accruals basis, and on a going concern basis (Note 2.2), in accordance with: - Part 15 (Accounts and reports) of the Companies Act 2006 [which applies to companies incorporated in the UK); - Regulation 8 (Statement of account - Fully accrued accounts) of The Charities Accounts (Scotland) Regulations 2006 [which applies to charities registered in Scotland); - '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)', published in October 2019 ("the Charities SORP"); - The Financial Reporting Standard applicable in the UK and Republic of Ireland, published in January 2022 ("FRS 102"), to the extent that it applies to small entities and public benefit entities; - UK Generally Accepted Accounting Practice; and - • the historical cost convention. The financial statements are presented in UK sterling, which is ACIE's functional currency, and rounded to the nearest pound. There have been no changes to the basis of preparation this year or to the previous year's financial statements. ACIE does not constitute a "larger charity" for the purposes of the Charities SORP, and has opted not to include a statement of cash flows in these financial statements. ## **2.2 Going concern** The Trustees assess whether the use of going concern is appropriate - ie whether there are any material uncertainties related to events or conditions that may cast significant doubt on the ability of ACIE to continue as a going concern. The Trustees make this assessment in respect of at least one year from the date they approve the financial statements, and have concluded that: - ACIE has adequate resources and reserves to enable it to continue in operational existence for the foreseeable future; - there are no material uncertainties about ACIE's ability to continue as a going concern; and - it remains appropriate to adopt the going concern basis of accounting in preparing these financial statements. Page 10 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** **2 Accounting policies (continued)** ## **2.3 Fund accounting** Any donation or grant received by ACIE that the donor requires to be used for a specified purpose is treated as 'restricted' income and credited to the appropriate 'restricted fund'. Any costs incurred in raising or administering such funds are charged against the relevant restricted fund. All other donations and grants received by ACIE are treated as 'unrestricted' income and credited to the General Fund, which is an 'unrestricted fund'. Designated funds are unrestricted funds that the Trustees have set aside for particular purposes. ## **2.4 Income** All income is recognised once ACIE has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably. Membership subscriptions and professional indemnity insurance fees received are accounted for as income in the financial year to which they relate. Any membership subscriptions or professional indemnity insurance fees received in one financial year that relate to a subsequent financial year are accounted for in the balance sheet as deferred income. Fees received for conferences, training courses and webinars are accounted for as income in the financial year in which the relevant event takes place. Any fees received in one financial year for an event in a subsequent financial year are accounted for in the balance sheet as deferred income. ## **2.5 Interest receivable** Interest on funds held on deposit is included when receivable and the amount can be measured reliably by ACIE; this is normally upon notification of the interest paid or payable by the institution with which the funds are deposited. ## **2.6 Expenditure** Expenditure is recognised on an accruals basis; as soon as a legal or constructive obligation has arisen that commits ACIE to transfer economic benefit (usually in the form of money) to a third party in settlement, and the amount of the obligation can be measured or estimated reliably. A legal obligation arises when ACIE enters into a binding contract or there is a statutory requirement for ACIE to make a payment. When ACIE enters into a contract for the supply of goods or services, expenditure is recognised once the supplier of the goods or services has performed its part of the contract. A constructive obligation arises when ACIE indicates to other parties that it accepts particular responsibilities and thereby creates a valid expectation on their part that ACIE will meet them. Expenditure on charitable activities comprises expenditure that is incurred when undertaking the activities which further ACIE's objectives, as well as any associated support costs. Governance costs comprise all costs involving the public accountability of ACIE and its compliance with regulation and good practice, including the costs of preparing and examining the financial statements, the cost of trustee meetings and the cost of any legal advice to trustees on governance or constitutional matters. Page 11 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **2 Accounting policies (continued)** ## **2.7 Taxation** ACIE is not liable to corporation tax, capital gains tax or income tax on its charitable activities. Irrecoverable VAT is included in the asset cost or the expense to which it relates. ## **2.8 Tangible assets** Tangible assets are capitalised if they can be used for more than one year and cost at least £1,000. They are valued at cost or, if gifted, at their value on receipt. ACIE does not currently have any capitalised tangible assets. ## **2.9 Cash at bank and in hand** Cash at bank and in hand comprises cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. ## **2.10 Financial instruments** ACIE has elected to apply the provisions of Section 11 (Basic Financial Instruments) and Section 12 (Other Financial Instruments Issues) of FRS 102 to all of its financial instruments. Financial instruments are recognised in ACIE's balance sheet when ACIE becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. ## _Basic financial assets_ Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. ## _Basic financial liabilities_ Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. ## _Derecognition of financial liabilities_ Financial liabilities are derecognised when ACIE's contractual obligations expire or are discharged or cancelled. Page 12 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **3 Critical accounting estimates and areas of judgement** In the application of ACIE's accounting policies, the Trustees are required to make judgments, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods. There were no critical accounting estimates made in either year. ## **4 Income from donations and legacies** |Donations to General Fund
Donations to Bursary Fund
Gift Aid tax claimed on donations to Bursary Fund
Total income from donations and legacies|**Unrestricted**
**fund - General**
**Fund**
**2023**
**£**
**135**
**Restricted fund**
**- Bursary Fund**
**2023**
**£**
**675**
**87**
**762**
**897**
Unrestricted
fund - General
Fund
2022
£
110
Restricted fund
- Bursary Fund
2022
£
685
116
801
911| |---|---| ## **5 Income from charitable activities** |Membership subscriptions
Professional indemnity insurance fees from members
Fees - Training courses and webinars
Fees - Conferences
Sales of 'Independent Examiner Workbook for Members'
Fees - Applications for Full Membership
Advertising in ACIE newsletter|**Unrestricted**
**fund**
**General Fund**
**2023**
£
**32,144**
**7,784**
**7,045**
**3,310**
**1,620**
**250**
Un restricted
fund
General Fund
2022
£
33,034
6,860
8,305
2,330
2,141
380
1,000| |---|---| ||**52,153**
54,050| Page 13 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **6 Expenditure on charitable activities - Direct costs** |**Expenditure on charitable activities - Direct costs**||| |---|---|---| ||**Unrestricted**|Un restricted| ||**fund**|fund -| ||**General Fund**|General Fund| ||**2023**|2022| ||£|£| |Training courses and webinars - Presenters, facilitators and venues|**11,022**|6,365| |Training courses and webinars - Trustees' expenses - Travel and subsistence||| |(Note 10)||98| |Conferences|**4,285**|10,076| |Professional indemnity insurance for members|**8,738**|4,605| |Bank processing charges|**658**|809| |Newsletter design and production|**1,068**|674| ||**25,771**|22,627| ## **7 Expenditure on charitable activities - Support costs** |Design and development of revised website, logo and artwork
Staff costs (Note 8)
Office and administrative support
Governance costs (Note 9)
Website, software and email
Employee - Travel and subsistence
Subscriptions
Insurance
Employee - Training and development
Telephone
Payroll service (Note 16)
Virtual office
Other|**Unrestricted**
**funds**
**2023**
£
**19,344**
**16,106**
**6,615**
**3,958**
**2,222**
**1,259**
**950**
**681**
**581**
**418**
**300**
**601**
Un restricted
funds
2022
£
14,658
6,000
3,437
1,648
325
747
636
10
478
276
300
206| |---|---| ||**53,035**
28,721| The expenditure on 'Support costs - Website, software and email' includes £144 (2022: £144) attributable to the Designated Development Fund. All other expenditure on support costs was attributable to the General Fund in both years. ## **8 Expenditure on charitable activities - Support costs - Staff costs** For both years, the amount shown for expenditure on staff costs in Note 7 constitutes the gross salary of ACIE's one part-time employee, who is primarily involved in managing development. In accordance with HMRC's rules that apply to eligible employers, ACIE (as a charity) claimed Employment Allowance, which reduced the amount payable for Class 1 Employer's National Insurance contributions to £nil for both years. No pension contributions were payable for either year. Page 14 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements** ## **For the year ended 31 March 2023** ## **9 Expenditure on charitable activities - Support costs - Governance costs** |Independent Examiner's fee
Trustees - Travel and subsistence (Note 10)
Trustees - Training and development
Legal advice
Trustee meetings - Room hire
Compliance charges (Note 16)|**Unrestricted**
Un restricted
**fund -**
fund -
**General Fund**
General Fund
**2023**
2022
£
£
**1,800**
1,680
**953**
145
85
**698**
1,505
**390**
**117**
22| |---|---| ||**3,958**
3,437| ## **10 Trustees' remuneration and expenses** Neither Trustees nor any persons connected with them received any remuneration or other benefits for either year. For the year ended 31 March 2023, a total of £953 was reimbursed to six Trustees for travel and subsistence expenses incurred in fulfilling their Trustee duties. For the year ended 31 March 2022, a total of £243 was reimbursed to two Trustees for travel and subsistence expenses incurred in fulfilling their Trustee duties. The Trustees are ACIE'S key management. ## **11 Debtors** |Prepayments
Gift aid recoverable
Other debtors|**2023**
£
**838**
**87**
**758**
2022
£
**1,017**
**253**
**239**| |---|---| ||**1,683**
**1,509**| ## **12 Creditors: Amounts falling due within one year** ||**2023**|2022| |---|---|---| ||**£**|£| |Deferred income|**6,361**|7,900| |Provisions for refunds payable on training courses, webinars and||| |conferences|**995**|970| |Accruals - Independent Examiner's fee|**1,800**|1,680| |Taxation and social security - PAYE & NI contributions|**90**|86| |Other creditors|**1,973**|1,311| ||**11,219**|11,947| ||**2023**|2022| ||**£**|£| |Deferred income at beginning of year|**7,900**|8,949| |Resources deferred during year|**6,361**|7,900| |Amounts released from previous year|**(7,900)**|(8,949)| |Deferred income at end of year|**6,361**|7,900| Page 15 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **13 Financial instruments** |**Financial assets**
Financial assets measured at fair value through income and expenditure:
Cash at bank and in hand
Gift aid recoverable
Other debtors
**Financial liabilities**
Financial liabilities measured at fair value through income and expenditure:
Accruals
Provisions for refunds payable on training courses, webinars and
conferences
Other creditors|
**2023**
**£**
**58,900**
**87**
**758**
**59,745**
**2023**
**£**
**(1,800)**
**(995)**
**(1,973)**
2022
**£**
84,960
253
239
85,452
2022
**£**
(1,680)
(970)
(1,311)| |---|---| ||**(4,768)**
(3,961)| Other financial liabilities measured at fair value through income and expenditure comprise creditors. ## **14 Analysis of net assets between funds** ## **31 March 2023** |Current assets
Creditors: Amounts falling due within one year
**Total**
**31 March 2022**
Current assets
Creditors: Amounts falling due within one year
**Total**|**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
60,496
87
(11,219)
**Total**
**funds**
**£**
60,583
(11,219)| |---|---| ||49,277
87
**Unrestricted**
**Restricted**
**funds**
**funds**
**£**
**£**
86,217
252
(11,947)
49,364
**Total**
**funds**
**£**
86,469
(11,947)| ||74,270
252
74,522| Page 16 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **15 Statement of funds** ## **Year ended 31 March 2023** |**Unrestricted funds**
Designated fund - Development
Fund
General Fund
**Total unrestricted funds**
**Restricted fund**
Bursary Fund
**Total funds**
**Year ended 31 March 2022**
**Unrestricted funds**
Designated fund - Development
Fund
General Fund
**Total unrestricted funds**
**Restricted funds**
Bursary Fund
**Total funds**|**Balance at**
**Balance at**
**beginning**
**Transfers**
**end**
**of year**
**Income**
**Expenditure**
**in/out**
**of year**
£
£
£
£
£
4,770
(144)
4,626
69,500
52,886
(78,662)
927
44,651
74,270
52,886
(78,806)
927
49,277
252
762
(927)
87
74,522
53,648
(78,806)
49,364
**Balance at**
**Balance at**
**beginning**
**Transfers**
**end**
**of year**
**Income**
**Expenditure**
**in/out**
**of year**
£
£
£
£
£
4,856
(86)
4,770
65,879
54,198
(51,262)
685
69,500
70,735
54,198
(51,348)
685
74,270
136
801
(685)
252
70,871
54,999
(51,348)
74,522| |---|---| ## **Designated fund - Development Fund** The Trustees resolved to designate £5,000 of the General Fund to be spent on development and training for the members. ## **Restricted fund - Bursary Fund** The Bursary Fund restricted fund is funded by donations from members, and used to subsidise those members who are Voluntary Independent Examiners ("VI Es") and pay their membership subscriptions at a lower level than other members. During the year, donations totalling £675 (2022: £685) were received for the Bursary Fund, and £927 (2022: £685) was transferred from the Bursary Fund to the General Fund to subsidise the VIEs' membership subscriptions. The balance of £87 on the Bursary Fund at 31 March 2023 (2022: £252) represents the total amount of Gift Aid tax recoverable at that date on the donations received for the Bursary Fund. Page 17 **Association of Charity Independent Examiners (A company limited by guarantee)** ## **Notes to the financial statements For the year ended 31 March 2023** ## **16 Related party transactions** Mark Heaton (ACIE Trustee from 22 October 2019) is a director of the accountancy practice, KM Business Solutions Limited. For the year ended 31 March 2023, fees totalling £417 were payable by ACIE to KM Business Solutions Limited, for payroll service (£300) and compliance charges (£117). For the year ended 31 March 2022, fees totalling £299 were payable by ACIE to KM Business Solutions Limited, for payroll service (£276) and compliance charges (£22). All individuals who were Trustees for all or part of the two years paid the same amounts as other members for their membership subscriptions, professional indemnity insurance, conference fees, course and webinar fees, and the Independent Examiner Workbook for Members. Other than those reported in Note 10 and in this Note, there were no related party transactions in either year that require disclosure. ## **17 Statement of financial activities (incorporating income and expenditure account) For the year ended 31 March 2022** |**Note**
**Income from:**
Donations and legacies
4
Charitable activities
5
Bank interest
**Total income**
**Expenditure on charitable activities:**
Direct costs
6
Support costs
7
**Total expenditure**
**Net income**
Transfers between funds
15
**Net movement in funds**
**Reconciliation of funds:**
Total funds brought forward
15
**Total funds carried forward**
15|**Unrestricted**
**Restricted**
**Funds**
**funds**
**2022**
**2022**
**£**
**£**
**110**
**801**
**54,050**
**38**
**Total**
Total
**funds**
funds
**2022**
2021
**Restated**
**£**
£
**911**
671
**54,050**
54,428
**38**
43| |---|---| ||**54,198**
**801**
**54,999**
55,142| ||**22,627**
**28,721**
**22,627**
10,541
**28,721**
25,032| ||**51,348**
**51,348**
35,573| ||**2,850**
**801**
**685**
**(685)**
**3,651**
19,569| ||**3,535**
**116**
**3,651**
19,569| ||**70,735**
**136**
**70,871**
51,302| ||**74,270**
**252**
**74,522**
70,871| Page 18