Recently the Government announced changes to the audit threshold for charities with accounting periods ending on or after 31 March 2015:

  1. The income threshold has increased from £500,000 to £1 million.
  2. The aggregate group income threshold at which parent charities should have group accounts audited has increased from £500,000 to £1 million.
  3. The threshold for preparation of group accounts has increased from £500,000 to £1 million.

The income and asset component of the asset threshold remains unchanged and charities with gross assets worth more than £3.26 million and gross income of more than £250,000 will still be required to have an audit.

Any charity with a period ended on or after 31 March 2015 will need to consider what impact these changes will have.  Whilst these are statutory thresholds a charity will still be required to have an audit where:

  1. The trustees request and audit; or
  2. The governing document of the charity may contains specific provisions about the external scrutiny of the charity’s accounts.  In such cases the charity must follow the higher standard of scrutiny required by either the statutory framework or the governing document.

The Charities Commission issued new guidance for charities in March 2015 which can be found at the Gov.UK website here.

If you have any questions over the impact of these changes for a charity then do please get in touch.